Ten tips on how to write without prejudice letters to help you get a quick, painless settlement agreement and exit package deal. A without prejudice letter is a letter that is sent in an attempt to negotiate a settlement in a legal dispute.This guide examines the issues that parties to a dispute should consider when seeking to negotiate terms of settlement. The WP rule is to encourage settlement discussions without parties weakening their position in the formal dispute. This letter can be marked without prejudice. Only use the term "without prejudice" when commenting upon, communicating or responding to a settlement proposal or offer. The following is a sample 'Without Prejudice' letter based on the case described in Precedent 1. Negotiation letters. These without prejudice letter templates should help you to secure the settlement agreement deal which you deserve. Redundancy. A high proportion of civil cases settle,1 but a sealed settlement agreement is filed in less than one-half of one percent of civil cases.